Part-1 | |
Computation of Transfer Price per Trailer | |
Retail Price of Trailer | 92 |
Variable cost | 42 |
Contribution | 50 |
Minimum Selling Price to Assemble division will be Retail Selling Price $92 . | |||
Hence transfer Price will be $92 |
Part-2 | ||
Available Capacity = Total Capacity- Sell to Outside Supplier | ||
=28000-10300= 17700 |
Spare cpacity is not having any use , Hence trailer division will charged from the range of Minumim Variable cost of $42 to Maximum Retail selling Price of $ 92. | ||||||||||
Hence, Transfer Price will be atleast $42 but not more than $92 |
Exercise 9-20B Determining transfer prices LO C2 The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price...
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $102 each. Each trailer incurs $47 of variable manufacturing costs. The Trailer division has capacity for 29,000 trailers per year and incurs fixed costs of $440,000 per year. Required: 1.Assume the Assembly division of Baxter Bicycles wants to buy 5,300 trailers per year from the Trailer division. If the Trailer division can sell all...
The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $93 each. Each trailer incurs $40 of variable manufacturing costs. The trailer division has capacity for 25,000 trailers per year and incurs fixed costs of $550,000 per year. Required: 1. Assume the assembly division of Baxter Bicycles wants to buy 5,400 trailers per year from the trailer division. If the trailer division can sell...
Check my work Exercise 22-20B Determining transfer prices LO C2 points The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $108 each. Each trailer incurs $39 of variable manufacturing costs. The Trailer division has capacity for 26,000 trailers per year and incurs fixed costs of $530,000 per year. eBook Hint Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,400...
Ch The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The tralers have a retail price of $106 each. Each trailer incurs $48 of variable manufacturing costs. The traller division has capacity for 29,000 trallers per year and incurs fixed costs of $550,000 per year Requi 1. Assume the assembly division of Baxter Bicycles wants to buy 5 ,600 trailers per year from the traller division. Ir the trailer division...
QS 9-178 Determining transfer prices without excess capacity LO C2 The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $220 per windshield and has capacity to make 550,000 windshields per year. The market price is $485 per windshield. The Windshield division incurs total fixed costs of $3,750,000 per year Assume the Windshield division is operating at full capacity, what transfer price should be used on transfers...
QS 22-17B Determining transfer prices without excess capacity LO C2 The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $284 per windshield and has capacity to make 660,000 windshields per year. The market price is $555 per windshield. The Windshield division incurs total fixed costs of $3,100,000 per year. Assume the Windshield division is operating at full capacity, what transfer price should be used on transfers...
Qs 22-17B Determining transfer prices without excess capacity LO C2 The Windshleld divislon of Fast Car Co. makes windshlelds for use In Fast Car's Assembly division. The Windshleld division Incurs varlable costs of $264 per windshleld and has capacity to make 530,000 windshlelds per year. The market price is $520 per windshleld. The Windshield divislon Incurs total fixed costs of $3,350.000 per year Assume the Windshleld divislon Is operating at full capacity, what transfer price should be used on transfers...
Setting Transfer Prices --Market Price versus Full Cost Ardmore, Inc., manufactures heating and air conditioning units in its six divisions. One division, the Components Division, produces electronic components that can be used by the other five. All the components produced by this division can be sold to outside customers; however, from the beginning, about 70 percent of its output has been used internally. The current policy requires that all internal transfers of components be transferred at full cost. Recently, Cynthia...
Setting Transfer Prices-Market Price versus Full Cost Ardmore, Inc., manufactures heating and air conditioning units in its six divisions. One division, the Components Division, produces electronic components that can be used by the other five. All the components produced by this division can be sold to outside customers; however, from the beginning, about 70 percent of its output has been used internally. The current policy requires that all internal transfers of components be transferred at full cost. Recently, Cynthia Busby,...